5G Core Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented By Component (Solution, Service), By Deployment Mode (Cloud, On Premise), By End User (Consumer, Enterprises), By Network Functions (AMF (Access and Mobility Management Function), SMF (Session Management Function), UPF (User Plane Function), PCF (Policy Control Function), NEF (Network Exposure Function), NRF (NF Repository Function), UDM (Unified Data Management), AUSF (Authentication Server Function), AF (Application Function), NSSF (Network Slice Selection Function) and others), By Region, Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 3.29 Billion
CAGR (2026-2031)	36.04%
Fastest Growing Segment	Cloud
Largest Market	North America
Market Size (2031)	USD 20.85 Billion

Market Overview

The Global 5G Core Market will grow from USD 3.29 Billion in 2025 to USD 20.85 Billion by 2031 at a 36.04% CAGR. The 5G Core functions as the architectural brain of next-generation networks by utilizing a cloud-native framework to decouple control plane functions from user plane traffic. This product enables advanced capabilities such as network slicing and automated lifecycle management which allow operators to support diverse enterprise use cases. Primary drivers fueling market growth include the escalating demand for industrial automation and the imperative for mobile operators to adopt virtualized infrastructures for greater scalability. These factors fundamentally underpin the expansion of the sector by necessitating robust and flexible core networks capable of handling exponential data traffic increases.

Market expansion faces a significant impediment arising from the operational complexity and financial burden associated with migrating legacy non-standalone networks to fully standalone 5G core environments. This integration process requires rigorous testing to ensure continuity which frequently extends deployment timelines and delays return on investment. According to the Global Mobile Suppliers Association, in 2025, 181 operators in 73 countries were investing in public 5G standalone networks. This data illustrates that while commitment to the technology is evident, the actual commercialization rate remains tempered by the formidable challenges inherent in upgrading critical network infrastructure.

Key Market Drivers

The strategic shift towards Standalone 5G infrastructure constitutes a primary catalyst for the 5G Core market as this architecture is essential for unlocking the full potential of next-generation technology. Unlike Non-Standalone deployments that rely on existing legacy cores, Standalone implementations utilize a cloud-native 5G Core to deliver ultra-low latency, massive machine-type communications, and network slicing capabilities. This transition allows operators to offer differentiated services and monetize complex enterprise use cases that older infrastructures cannot support. The momentum in this area is accelerating as carriers move beyond initial trials to commercial availability. According to the Global Mobile Suppliers Association, August 2025, 77 operators in 43 countries had launched or soft-launched public 5G Standalone networks, signifying a maturing landscape for core network vendors.

Concurrently, the surging deployment of private 5G networks in industrial sectors is significantly propelling market expansion. Enterprises in manufacturing, logistics, and energy are increasingly adopting dedicated 5G Core solutions to ensure data sovereignty, high reliability, and tailored network performance for mission-critical applications. This trend drives demand for compact and flexible core network solutions that can be deployed on-premises or at the edge. The ecosystem for these deployments is expanding rapidly as major vendors secure large contracts. According to Nokia, January 2025, the company had expanded its presence in private wireless to 850 customers globally. Furthermore, the broader device ecosystem is evolving to support these advanced architectures, which is critical for end-to-end functionality. According to the Global Mobile Suppliers Association, June 2025, there were 2,437 announced 5G devices with claimed Standalone support, highlighting the growing readiness of the terminal market to utilize next-generation core capabilities.

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Key Market Challenges

The operational complexity and substantial financial burden associated with migrating from legacy non-standalone architectures to fully standalone 5G core environments act as a primary restraint on market growth. Operators encounter significant technical hurdles when integrating cloud-native functions and ensuring interoperability within multi-vendor ecosystems, a process that necessitates rigorous and prolonged testing. This intricate integration requirement frequently disrupts deployment schedules and escalates capital expenditures, forcing many service providers to postpone full commercial rollouts despite their strategic commitment to the technology.

The impact of these challenges is evident in the slow conversion of investment into active service. The rigorous demands of upgrading infrastructure have created a measurable lag in commercialization rates globally, as operators struggle to justify the immediate return on investment for such a capital-intensive overhaul. According to the Global Mobile Suppliers Association, as of December 2025, only 88 operators globally had successfully launched commercial public 5G Standalone networks. This figure highlights a significant gap when compared to broader investment metrics, demonstrating how engineering difficulties and cost implications are directly throttling the expansion of the global 5G core market.

Key Market Trends

The migration of 5G Core workloads to public and hybrid clouds represents a fundamental structural change as operators seek to reduce capital expenditures and leverage hyperscaler innovation. By partnering with major cloud providers, telecommunications companies are moving beyond private cloud silos to deploy containerized network functions that offer superior elasticity and integration with advanced AI analytics. This approach allows for the dynamic scaling of control plane resources during peak traffic events without the need for permanent hardware over-provisioning. Validating this operational shift, according to RCR Wireless News, March 2025, O2 Telefónica Germany officially selected Amazon Web Services to expand its cloud-based core network infrastructure, building upon a successful initial deployment that was already supporting one million subscribers.

Concurrently, the commercialization of network slicing is transitioning from experimental trials to a viable revenue-generating mechanism for enterprise services. As 5G Standalone architectures mature, operators are launching dedicated logical networks that guarantee specific performance parameters such as latency and throughput for mission-critical industrial applications and media broadcasting. This capability enables service providers to monetize service-level agreements (SLAs) rather than selling generic data connectivity, effectively opening new business-to-business markets. This trend is gaining measurable traction; according to the Ericsson Mobility Report, November 2025, 33 communications service providers globally had successfully introduced commercial network slicing offerings to deliver differentiated service quality to their customers.

Segmental Insights

The Cloud segment is currently positioned as the fastest-growing category within the Global 5G Core Market, driven by the widespread adoption of cloud-native architectures standardized by the 3rd Generation Partnership Project (3GPP). Telecommunication operators are prioritizing cloud deployments to minimize hardware dependency and transition toward flexible operational expenditure models. This approach enables providers to scale network capacity dynamically and manage resources more efficiently through virtualization. Additionally, the integration of cloud infrastructure facilitates the rapid delivery of diverse services, such as network slicing, allowing operators to support specific industrial requirements while maintaining network reliability.

Regional Insights

North America maintains a leading position in the Global 5G Core Market due to substantial investments in telecommunications infrastructure and the rapid adoption of standalone 5G networks. This regional dominance is reinforced by the presence of major technology providers driving the transition toward cloud-native network architectures. Additionally, the Federal Communications Commission facilitates market expansion through policies that support efficient spectrum allocation and infrastructure modernization. This cohesive ecosystem of technological integration and favorable regulatory frameworks enables North American operators to accelerate the deployment of next-generation network services.

Recent Developments

• In June 2025, Ericsson collaborated with Google Cloud to launch a new software-as-a-service platform known as Ericsson On-Demand. This solution provided communications service providers with a fully managed 5G Core network capability running directly on Google Cloud’s public infrastructure. By utilizing Google Kubernetes Engine and artificial intelligence tools, the platform allowed operators to provision core network services in minutes rather than months. The product was designed to support the rapid rollout of Fixed Wireless Access and enterprise private networks, offering a consumption-based business model that reduced upfront capital expenditures and simplified network operations.
• In April 2025, Nokia and Bharti Airtel expanded their multi-year partnership to deploy an advanced core network across India. The strategic agreement involved the rollout of Nokia’s Packet Core appliance-based solution to efficiently manage the operator's growing 4G and 5G subscriber base. This collaboration focused on integrating 5G Standalone readiness and Fixed Wireless Access capabilities into a unified server infrastructure. The project utilized Nokia’s automation framework to enable zero-touch service lifecycle management, allowing the operator to launch new high-speed broadband and enterprise-critical services with greater efficiency and significantly reduced operational complexity.
• In March 2025, Samsung Electronics demonstrated a significant performance breakthrough for its 5G Cloud Native Core by leveraging Intel’s latest processor technology. Utilizing the Intel Xeon 6 processors with Efficient-cores, the company achieved a 3.2-fold improvement in performance for its User Plane Function compared to previous hardware generations. This research highlighted how optimized software and hardware integration could substantially reduce power consumption and the physical server footprint for mobile operators. The development aimed to support sustainable network scaling and lower the total cost of ownership for telecommunications providers that are deploying high-capacity 5G networks.
• In October 2024, Cisco and NEC Corporation introduced a joint private 5G solution specifically tailored for enterprise customers. This strategic collaboration integrated Cisco’s 5G Standalone Core and Cloud Control Center with NEC’s validated radio network and professional systems integration services. The comprehensive offering was designed to support high-performance industrial applications, satisfying ultra-low latency requirements and facilitating extensive Internet of Things deployments. The companies initially targeted enterprise clients in Europe and the Middle East, with plans to expand globally to help industries drive digital transformation through a secured, scalable, and dedicated 5G network infrastructure.

Key Market Players

• Affirmed Networks, Inc.
• NEC Corporation
• Cisco Systems Inc.
• Samsung Electronics Co. Ltd.
• Hewlett Packard Enterprise Development LP
• Nokia Corporation
• Oracle Corporation
• Telefonaktiebolaget LM Ericsson
• Huawei Technologies Co. Ltd.
• ZTE Corporation

By Component	By Deployment Mode	By End User	By Network Functions	By Region
Solution Service	Cloud On Premise	Consumer Enterprises	AMF (Access and Mobility Management Function) SMF (Session Management Function) UPF (User Plane Function) PCF (Policy Control Function) NEF (Network Exposure Function) NRF (NF Repository Function) UDM (Unified Data Management) AUSF (Authentication Server Function) AF (Application Function) NSSF (Network Slice Selection Function) and others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global 5G Core Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• 5G Core Market, By Component:

• Solution
• Service

• 5G Core Market, By Deployment Mode:

• Cloud
• On Premise

• 5G Core Market, By End User:

• Consumer
• Enterprises

• 5G Core Market, By Network Functions:

• AMF (Access and Mobility Management Function)
• SMF (Session Management Function)
• UPF (User Plane Function)
• PCF (Policy Control Function)
• NEF (Network Exposure Function)
• NRF (NF Repository Function)
• UDM (Unified Data Management)
• AUSF (Authentication Server Function)
• AF (Application Function)
• NSSF (Network Slice Selection Function) and others

• 5G Core Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE